Benefits dependency in South Wales is still a massive problem - despite booming employment, a leading Minister has admitted.

Work and Pensions Minister John Hutton was meeting First Minister Rhodri Morgan today to thrash out ways to tackle the high number of people claiming benefits.

Several parts of the region have not shared in the jobs boom across Wales that has seen unemployment reduced to the lowest level for 30 years.

This is despite Wales outperforming the rest of the UK in terms of creating jobs.

Mr Hutton said: 'There are still areas within Wales which haven't shared in the growing prosperity of the rest of the country.

'The Valleys, in particular, deserve specific attention, where unemployment is still low and benefit receipt still high.'

He highlighted the success of the Want2Work initiative that has now helped 1,000 people back into employment.

Mr Hutton said: 'We have made real progress so far, with 2.5 million more people in work since 1997 and 900,000 fewer on benefits.

'There are not many countries around the world that have higher employment rates than Wales and even fewer with lower unemployment rates. Wales has a higher employment rate than Germany, France and Japan.'

Rhodri Morgan said it was key that Wales worked closely with Westminster to tackle continuing unemployment problems.

He said: 'It is important for the Welsh Assembly Government and the Department for Work and Pensions to continue to work closely together to deliver full employment, the eradication of child poverty and a Wales where all can prosper.'

In the second of a series of visits around Britain, Mr Hutton and his ministerial team were today seeing some of the work being carried out across Wales to tackle poverty and unemployment.

They will be visiting the Cardiff Enterprise Centre in Clare Road, Grangetown, Cardiff, meeting people on the Want2Work scheme, including the 1,000th person who has been helped into work.